News Corp B (NWS)
Quick ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,960,000 | 1,833,000 | 1,822,000 | 2,236,000 | 1,517,000 |
| Short-term investments | US$ in thousands | 214,000 | 235,000 | 212,000 | 280,000 | 177,000 |
| Receivables | US$ in thousands | 1,503,000 | 1,425,000 | 1,502,000 | 1,498,000 | 1,203,000 |
| Total current liabilities | US$ in thousands | 3,055,000 | 3,165,000 | 3,519,000 | 3,234,000 | 2,682,000 |
| Quick ratio | 1.20 | 1.10 | 1.00 | 1.24 | 1.08 |
June 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,960,000K
+ $214,000K
+ $1,503,000K)
÷ $3,055,000K
= 1.20
The quick ratio of News Corp B has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities.
In the most recent year, as of June 30, 2024, the quick ratio stands at 1.20, which suggests that News Corp B has improved its short-term liquidity position compared to the previous year. This indicates that the company has a sufficient level of liquid assets to meet its short-term financial commitments without relying heavily on inventory.
Looking back over the past five years, the quick ratio has been within a reasonable range, with the lowest ratio recorded in June 30, 2022, at 1.00, and the highest ratio observed in June 30, 2021, at 1.24. These fluctuations may indicate varying levels of efficiency in managing its short-term liquidity and operational cash flows.
Overall, maintaining a quick ratio above 1 signifies News Corp B's ability to cover its short-term obligations with its quick assets, providing some assurance to creditors and investors about the company's financial health in the short run. Monitoring this ratio over time can help assess the company's liquidity management and financial risk.
Peer comparison
Jun 30, 2024